Goods and Services Tax (GST) is an indirect tax on the supply of goods and services. GST introduced to subsume several taxes and levies such as service tax, excise duty, entry tax, entertainment tax, State-level VATs, Luxury Taxes, Octroi, etc. So now, there is only one tax which makes dream of One Nation, One Tax.
In India, GST Model is divided into two parts, Central GST (CGST) and State GST (SGST).
Central GST (CGST) is levied by Central Government.
State GST (SGST) is levied by State Government.
Transactions made within a single state will be levied by Central GST (CGST) and State GST (SGST).
For inter-state transactions, an integrated GST which is known as IGST will be levied by Central Government.
When is it required to register for GST ?
There are different scenarios where it is mandatory to register for GST and have GSTIN (GST Identification Number).
- You are doing intrastate business and annual business turnover is above 20 Lakhs.
- You are doing inter-state business and annual business turnover is above 10 lakhs.
- Your business is located in special states such as Jammu & Kashmir, Assam, Himachal Pradesh, etc.
- Your annual turnover is above 10 lakhs and you have e-commerce business.
- You are required to pay tax under reverse charge or section 9 or sub-section (5).
What are the documents required for GST registration?
Following are the list of documents you would require to register for GST:
- PAN Card (Business / Applicant)
- Valid mobile number (Indian) and email address
- Proof of business address
- Bank account proof (Not mandatory in all cases)
These are the basic list of documents which is required to register for GST application.
If you find your business is required to get registered with GST then you can visit LegalFriend. You can connect with Legal expert and get free consulting to understand all the process.